What is Safemoon v2 (SFM)?
SafeMoon v2 (SFM) is an upgraded version on SafeMoon v1, a blockchain using community-driven protocol. According to the whitepaper, this protocol solves the problems of the cryptocurrency world, such as mining rewards, farming rewards, and liquidity provisions.
The mining process can be expensive to its users, as they need to pay a fee to claim rewards. Instead of mining rewards, the protocol allows users to participate in a smart contract token reflection to produce tokens inside the wallet. Here, token reflection means upon every transaction held on the platform, some part is secured in the liquidity pool (LP), and another part gets redistributed to the token holders. Token reflection is a compounding reward structure that requires no transaction fee. This structure is secured by the smart contract system. Smart contracts are just like regular contracts; however, instead of being drafted on paper, these contracts run in the form of protocols on blockchain.
Earlier (in SafeMoon v1), the developers created incentives for users to provide liquidity. Now, the protocol uses a smart contract function to capture liquidity automatically. Besides, the smart contract function also facilitates token burning, reducing the token supply and promoting scarcity. Token burning means sending usable tokens to an unknown address forever. This increases the value of the token by reducing its supply.
Some of the benefits of Safemoon v2 (SFM) are:
Flexibility: The v2 can freely utilize the smart contract within the ecosystem by allowing contracts to adjust fees from 10% to 2%. Besides, the v2 version also integrates new products that can utilize SafeMoon.
Better Security: The new version reacts better to the threats that interact with smart contracts and blocklists them.
Rate Drop of Products: The rate drop of the trade from 10% to 2% will enable users to utilize SafeMoon as a utility token.
Increased Volume: The protocol has increased the volume of the new token so that users can get the benefit of lower rates
Self-Governing: The v2 version will make the protocol self-governing. The protocol can control the liquidity pool and add more pairing options within the ecosystem.
Further, users who wish to migrate from v1 to v2 will need to ensure that they have a proper amount of BNB (Binance Smart Chain native token) in their wallets. A blockchain-mandated fee will get charged to make the swap successful. However, SafeMoon will not charge anything for the migration. Moreover, after the swap, the user will receive more v2 tokens (SFM) as per the SafeMoon v2 contract to make up for the percentage of the SafeMoon fee charged from the v2 trade order.
History of SafeMoon v2 (SFM)
John Karony, the CEO, founded the project. The head team includes Charles Karony, VP of operations; Ryan Arriaga, the global head of products; and David B. Smith, the head of content. The v2 is under process and will soon get publicized.
